Company Formation in Estonia
The simplest way to register Estonian companies is by acquiring a pre-established company. Completing this legal process does not require a visit to Estonia. If a pre-formed company is purchased, the capital of 1,000 euros does not need to be contributed, as it has already been fully established. This method of registering a company in Estonia is particularly favoured by non-residents for its straightforwardness and absence of bureaucratic complexities.
The ready-made company with a contributed share capital in the amount of 1,000 EUR – 1,900 EUR:
- A ready-made company with registered share capital
- Contact person services for 1 year
- Legal address services for 1 year
- Notary services fees
- Transfer Agreement
- State fee
In addition, in case of the remote transfer, it would be necessary to prepare the Power of Attorney documents. Therefore, the additional cost of 500 EUR is added:
- Power of Attorney documents preparation
- Power of Attorney documents sworn translation into Estonian
- Representation of participants by Power of Attorney during the deal with the notary
Why should you consider Estonia?
In recent times, Estonia, a country in northern Europe, has become the launching ground for many of the world’s rapidly growing companies, such as Skype, Bolt, TransferWise, Playtech, or Pipedrive.
The Estonian approach to business centers around a robust digital infrastructure and the belief that nearly every task can be efficiently conducted online with minimal expenditure of time and resources. Notably, a number of successful startups in Estonia are managed by digital nomads, entrepreneurs, freelancers, and self-employed individuals. To cater to this global entrepreneurial community, the e-Residency program was established, aiming to provide worldwide access to the Estonian business environment and streamline business processes. This program enables e-Residents, including digital nomads and entrepreneurs worldwide, to leverage Estonia’s EU membership, granting them equal access to e-services and the ability to remotely manage their companies within the European Single Market.
ADVANTAGES OF REGISTERING A COMPANY IN ESTONIA
Estonia stands out as a digitally advanced nation, providing lucrative opportunities and favorable conditions for initiating a business. This is evident in the European startup landscape, where the average number of startups per 100,000 people is 5; however, in Estonia, this figure is six times higher. Consequently, Estonia claims the third position in the European countries’ startup ranking, attributed to various benefits associated with establishing a company in Estonia:
- 0% company income tax, specifically on retained earnings.
- Founders and Board members can be non-residents of Estonia, eliminating the necessity for a local Director.
- No obligatory requirement to pay a salary to the company director, and there are no salary prerequisites.
- Full remote management of the company is possible for owners with an e-Resident card.
- Board members engaged in business in Estonia have the option to apply for a residence permit lasting up to 5 years.
- The opportunity to acquire transportation and real estate under the ownership of an Estonian company without incurring taxes.
- Estonia has entered into the Convention for the Avoidance of Double Taxation with 59 countries.
- Estonia boasts a transparent and straightforward tax system without progressive taxes.
ESTONIA COMPANY FORMATION IN 2023
As of February 1, 2023, amendments to the Commercial Code in Estonia will come into effect, allowing the establishment of a limited liability company with a statutory capital as low as 1 euro cent. Notably, on the e-business portal, financial year reports are typically presented in full euros, potentially also in thousands. In instances where the report is prepared in full euros, the share capital should adhere to the rounding rule. For example, if the share capital is 1 cent, the share capital column should indicate 0 euros. If necessary, detailed information regarding the exact amount of statutory capital can be disclosed in the form of text within a designated annex.
Additionally, the Center of Registers and Information Systems has affirmed that rounding of statutory capital in the accounting report does not pose challenges during internal audits or subsequent checks for compliance with data in the commercial register when preparing and reviewing the report.
Leave your request and our team, from Regulated United Europe, will contact you and assist through the process of company registration in Estonia.
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